JB Oxford Holdings Inc. has had a history of scandal and now its trade processing unit has agreed to pay $2.1 million over allegations of abusive mutual fund trading.

The firms' subsidiary, National Clearing Corp., allegedly facilitated late trading in mutual fund shares and deceptive market timing, and will be paying a fine of $1 million. National Clearing Corp. will also be responsible for reimbursing clients up to $1.1 million for improper fees.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.